Oil and gas exploration company, LEKOIL, has announced it has entered into a Strategic Alliance Agreement (SAA) with NAMCOR Exploration and Production (PTY) through its subsidiary, LEKOIL Exploration & Production (PTY) Namibia Limited (LEKOIL Namibia).

NAMCOR E&P is a subsidiary of the national oil company of Namibia, the National Petroleum Corporation of Nigeria Pty Limited (NAMCOR) wants to invest capital in the acquisition of interests in well-managed oil producing assets in politically stable jurisdictions as a means of securing long-term sustainability.

The Agreement will leverage the technical capabilities of both parties towards the joint evaluation and acquisition of low-risk quick-to-production oil and gas assets across Africa.

LEKOIL has been operating in Namibia for several years. It currently holds an 80% stake in LEKOIL, with an entitlement to 90% of the income distributed from the Subsidiary. The company previously owned a 77.5% participating interest in offshore Blocks 2514A and 2514B.

The Chief Executive of LEKOIL, Lekan Akinyanmi said, “We are excited by this opportunity to work with NAMCOR again in evaluating and subsequently investing and developing high value assets within Africa. We look forward to benefitting from the synergies of this partnership as we share our considerable technical experience in oil and gas development and production in Africa.”

The Managing Director at NAMCOR, Immanuel Mulunga said, “We will greatly leverage from LEKOIL’s wealth of experience in operating and managing oil producing assets, as well as its deep knowledge of key African markets. At the same time, I believe LEKOIL will benefit from strategic commercial relationships that NAMCOR, as a national oil company, enjoys with a number of oil majors.”